So everyone has been hit really hard with the recession that has been taking place. There have been so many lay-offs and so many companies that have shut down…it’s SCARY!
But, Microsoft did something that might have gone too far.
The Microsoft Corporation launched one of the largest lay offs in history a few weeks ago. About 1, 000 people were let go from their jobs with a severance package. Well, little did some of them know that they would have to return some of the payment that they had just received.
Microsoft claimed that when they sent out the severance checks that in some of them there had been an error or glitch. They claimed that 25 of the 1,000 people received $4,000-$5,000 too much money and they wanted it back.
The letters from Microsoft surfaced on the Web last Saturday and caused an uproar with many people. Microsoft tried to explain that it had been a mistake but the media and public were having a field day with all of it.
Lisa Brummel, Senior Vice President for human resources, took most of the backlash from the public and decided o just let the employees keep the money.
By Monday morning there was a new letter stating that Microsoft was very sorry and that the employees could keep the money.
So, I guess by the media being so forceful it helped out these employees. If there would have never been a leak on the Web this action probably would of never happened.
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You are so right, Carrie! If not for the Internet and its ability to immediately spread news worldwide, Microsoft would never have been so exposed. If this had happened pre-Internet, the best those employees could have hoped for was a mention in a major daily. But I'm pretty sure a newspaper would not have reproduced the company letter word for word as in the Internet posting. Wow--major embarrassment for Microsoft as it dumps employees, and then adds insult to injury by asking for their severance pay to be returned. Nothing like an accounting error and then an unforgivable error in public relations to make this already noxious company seem even more so. Buy Apple in 2009--go Mac!
ReplyDeleteIt's so sad that they are asking their employees to return the the money they were given. Thank god for the media. I know Microsoft has to be embarrassed. That's why the country is in the shape its in today. Companies' are always doing things to hurt the little guy. If they would run the companies like they should and stop spending money on unnecessary things maybe just maybe people would still have their jobs. Very good post.
ReplyDeleteThis is one of the times that the media actually helped with leaking information. I'm sure Microsoft figured they should attempt to get the money back but soon found out it wasn't worth the hassle. It is definitely wrong to lay off over 1,000 employees, send them off with their severance package and then say, wait, sorry guys, we gave you to much. The nerve! Well, it serves them right. I don't even see why it was necessary for one of the largest software manafacturers to lay off so many people. I'm sure it was only to keep the members of the boards salary high. God forbid they have to give up their country club memberships so their employee's can feed their families. That really grinds my gears. Great post.
ReplyDeleteBill Gates is the richest person in the world so Microsoft paying these employees the amount of money they paid to these employees laid off is just a drop in the bucket to him. He doesn't care about these employees. All he cares about is making the almighty dollar. This story is one of a few that I can honestly say that the media can blow out of proportion and get away with it. In this instance, the media, whether it be on the internet or in the newspapers, helped these employees get their money's worth out of this severance. Very good post Carrie.
ReplyDeleteThe media has finally helped the people out for once. It is always a sad thing when companies are forced to laid off their workers. But microsoft isn't the only company that have been laying off workers. I would have been pissed if I had just gotten a paycheck and the company demanded that i return the money, it wouldn't be a pretty sight.
ReplyDeletei know that the econmoy is hurting in every way including companies liek microsift,m but cutting back and retreiving cash and payments from thier employee in my opninoon is obviously not the right choice. cutting advertising costs or paying less to the employees in future payments and checks maybe, but retreiuving them back after already giving them out is absurd.
ReplyDeleteI understand what your saying but they are still a business and accidents do happen.
ReplyDeleteIf your job accidently gave your check to another employee would you not want it back!?!?
I may be able to understand if that happen to a few people but 25 people accidently getting over $4,ooo does add up after a while.
Yeah the media may have helped the people keep the money but Microsoft took a big lost because of it.
If they made the mistake tthen the employees have the right to keep it. I would predict that a public statement saying " uhh we fired you, and then proceded to give you too large of a severence package, so uhh can we have our money back?" Would most likely start a public uproar. Can they legally be indian givers? Is that even allowed? And anyways what is 20-30 thousand dollars really going to do to microsoft? My guess, nothing!
ReplyDeletei understand th fact that companies are cutting cost and saving money but the fact that companies are taking back from thier employees after already giving out the money is preposterious. i think that it is very umprofessional and makes you look bad if your changing your mind at thge last minute and taking money back aftre the deed was already done. hopefully this act can be prevented int he future
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